WEB NEWS Comments & Business Outlook
Third Quarter 2011 Results
Revenues for the quarter ended September 30, 2011 increased 33% to $12.0 million compared to revenues of $9.0 million recorded in the third quarter of 2010.
Gross profit for the third quarter of 2011 increased 75% to $2.4 million (20.0% of revenues) from gross profit of $1.4 million (15.2% of revenues) in the third quarter of 2010. The increase in gross profit and gross profit as a percentage of revenues is primarily attributable to the increase in revenues.
Operating profit for the third quarter of 2011 was $959,000 compared to operating profit of $57,000 in the third quarter of 2010.
Net profit for the third quarter of 2011 increased 358% to $573,000 , or $0.09 per fully diluted share, from net profit of $125,000 , or $0.02 per fully diluted share, in the third quarter of 2010.
Arieh Reichart, President and Chief Executive Officer of Eltek commented: "The third quarter was another solid one for Eltek, as we managed to demonstrate continued strength in our core military and medical device markets. The increase in our revenues in the first three quarters of 2011 is mainly due to orders from our defense and aerospace customers, accompanied by improvements in our production lines and manufacturing processes, which enabled us to translate the increased demand for our products into increased revenue. We intend to continue with our efforts to capitalize on our leading position in the complex high-end PCB market to obtain more orders and sustained profitability."
Amnon Shemer , CFO of Eltek, added: “This is our third consecutive profitable quarter. All three quarters showed a double digit revenue increase over the comparative quarters in previous year. The increase in revenues was translated into profitability, mainly as a result of our efforts to keep the increase in cost of goods sold at a lower rate than the increase in revenues. In the third quarter we were successful in achieving our goal despite the increase in minimum wages in Israel, which became effective in July 2011. As a result, our gross profit increased by 75% in the third quarter of 2011 compared to 2010 and by 89% in the first nine months of 2011 compared to 2010.”
“In the third quarter we recorded financial expenses of $374,000 , which were higher than the $160,000 recorded in the second quarter of this year, mainly due to the increase in the dollar exchange rate during the end of the third quarter. Such increase required us to record a net loss from hedging transactions and additional financial cost resulting from the re-evaluation of our dollar denominated bank loans.” Mr. Shemer concluded.
Comments & Business Outlook
PETACH-TIKVA, Israel--Eltek Ltd. the leading Israeli manufacturer of advanced flex-rigid circuitry solutions, announced today its financial results for the fourth quarter and the year ended December 31, 2010.
Fourth Quarter 2010 :
Revenues for the quarter ended December 31, 2010 were $10.0 million, an increase of 11.7% compared to the revenues of $9.0 million recorded in the fourth quarter of 2009.
Gross profit for the fourth quarter of 2010 was $1.1 million (11.3% of revenues), similar to gross profit of $1.2 million (13% of revenues) in the fourth quarter of 2009.
Operating loss for the fourth quarter of 2010 was $504,000 compared with an operating loss of $542,000 in the fourth quarter of 2009.
Net loss for the fourth quarter of 2010 was $655,000 or ($0.10) per fully diluted share, compared with a net loss of $729,000 or ($0.11 ) per fully diluted share in the fourth quarter of 2009.
Arieh Reichart, President and Chief Executive Officer of Eltek, commented: "In the fourth quarter of 2010, we continued with our manufacturing efficiency improvements program according to plan, which was an important factor in our achieving increased revenues and net profit of $788,000 in the first quarter of 2011 ."
